Stanmore Resources Ltd (SMR) AI Stock Analysis

• Market Cap: AU$2.42B
• Dividend Yield: 7.32%
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 616.3
• Beta (1Y): 1.52
• Revenue Growth: -18.98%
• EPS Growth: -99.05%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Coal
• EPS (TTM): -0.09
• Shares Outstanding: 901,381,700
• 10 Day Avg. Volume: 1,813,584
• 30 Day Avg. Volume: 2,404,891
• PEG Ratio: -0.15
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 7.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$2.65
• Price Target Upside: 10.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: AU$2.50 ▲(4.17% Upside)

Stanmore Resources Ltd's overall score is driven by solid financial performance and technical indicators, despite valuation concerns due to a high P/E ratio. The earnings call provided a balanced view of operational strengths and market challenges, contributing positively to the score.

Positive Factors

Operational Recovery

The recovery in ROM coal mining volumes indicates resilience in operations, allowing the company to maintain production guidance despite weather challenges, which supports long-term stability and growth.

Safety Performance

Achieving a zero serious accident frequency rate demonstrates strong safety protocols, which can enhance operational efficiency and reduce potential liabilities, contributing to sustainable long-term operations.

Cash Flow and Liquidity

Strong operating cash flows and a robust liquidity position of over USD 400 million provide financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Suppressed Coal Pricing

Ongoing suppressed coal pricing due to global demand softness can pressure margins and revenue, potentially impacting long-term profitability and financial health if conditions persist.

Production Challenges

Production challenges at Isaac Plains due to weather impact the ability to meet full-year guidance, which could affect revenue stability and operational efficiency if not addressed.

Unexpected Costs

Unexpected stamp duty costs significantly above expectations can strain financial resources, affecting cash flow and potentially limiting investment in strategic initiatives.

Stanmore Resources Ltd Business Overview & Revenue Model

Company Description

Stanmore Resources Limited engages in the exploration, development, production, and sale of metallurgical coal in Australia. The company holds interests in the Isaac Plains, Isaac Downs, Isaac South, Clifford, The Range, Mackenzie, Belview, Tennyson, and Lilyvale projects in the Bowen and Surat basins of Queensland, as well as 50% interests in the Millennium and Mavis Downs mine located near Moranbah, Queensland. It also exports its products. The company was formerly known as Stanmore Coal Limited and changed its name to Stanmore Resources Limited in May 2021. The company was incorporated in 2008 and is headquartered in Brisbane, Australia. Stanmore Resources Limited is a subsidiary of Golden Investments (Australia) Pte. Ltd.

How the Company Makes Money

Stanmore Resources generates revenue primarily through the sale of metallurgical coal, which is utilized in the steel-making process. The company's revenue model is based on mining operations that extract coal from its licensed tenements, which are then processed and sold to customers, including steel manufacturers and energy producers. Key revenue streams include direct sales contracts with major steel producers, spot market sales, and long-term supply agreements. Additionally, Stanmore Resources may benefit from strategic partnerships with other mining companies or stakeholders in the resource sector, enhancing their operational efficiency and market reach. Factors contributing to its earnings also include fluctuations in global coal prices, demand for metallurgical coal, and operational cost management.

Stanmore Resources Ltd Financial Statement Overview

Summary

Stanmore Resources Ltd demonstrates a strong revenue base and profitability over the years. However, recent operational and cash flow challenges could impact future performance. The balance sheet remains stable, but attention to leverage and liquidity is crucial to sustain growth.

Income Statement

Stanmore Resources Ltd showed strong growth in revenue and profitability over the years. The gross profit margin is robust, indicating efficient cost management. However, the net profit margin in the latest year is lower than previous periods, reflecting increased expenses or cost pressures. The absence of EBIT in the most recent annual data is a concern, potentially signaling operational challenges.

Balance Sheet

The balance sheet demonstrates a solid equity base with a relatively low debt-to-equity ratio, indicating financial stability. However, there is a notable decrease in stockholders' equity and total assets over the years, suggesting potential asset write-downs or increased liabilities. The equity ratio remains healthy, but careful monitoring of leverage is advised.

Cash Flow

The cash flow statements indicate strong operating cash flows in prior years, though the most recent period shows reduced free cash flow and negative operating cash flow. This could signal potential liquidity issues. The company needs to improve its cash generation to maintain financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.54B	2.40B	2.80B	2.70B	277.60M	300.19M
Gross Profit	1.67B	2.00B	2.44B	2.22B	51.04M	32.91M
EBITDA	516.56M	699.70M	1.06B	1.12B	50.72M	19.70M
Net Income	-24.35M	191.50M	472.40M	666.80M	7.55M	-8.14M
Balance Sheet
Total Assets	3.19B	3.20B	3.61B	3.32B	322.70M	312.75M
Cash, Cash Equivalents and Short-Term Investments	181.82M	288.90M	446.30M	432.40M	45.60M	5.04M
Total Debt	596.92M	672.30M	775.70M	864.20M	75.71M	29.25M
Total Liabilities	1.47B	1.37B	1.85B	1.98B	204.70M	160.31M
Stockholders Equity	1.72B	1.83B	2.57B	1.33B	162.30M	152.44M
Cash Flow
Free Cash Flow	303.02M	222.00M	543.60M	1.06B	65.95M	-29.40M
Operating Cash Flow	437.68M	407.70M	736.90M	1.18B	127.50M	-15.70M
Investing Cash Flow	-365.76M	-249.80M	-258.60M	-1.43B	-97.13M	-13.70M
Financing Cash Flow	-357.25M	-314.90M	-462.90M	640.40M	27.45M	2.20M

Stanmore Resources Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SMR, the sentiment is Positive. The current price of 2.4 is below the 20-day moving average (MA) of 2.44, above the 50-day MA of 2.31, and above the 200-day MA of 2.10, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 71.79 is Negative, neither overbought nor oversold. The STOCH value of 92.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SMR.

Stanmore Resources Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHC	77 Outperform	AU$6.38B	9.66	11.40%	1.92%	52.51%	82.60%
YAL	73 Outperform	AU$6.73B	7.10	11.04%	11.73%	-8.45%	-24.30%
NHC	71 Outperform	AU$3.41B	7.72	17.04%	8.48%	-1.53%	-7.57%
SMR	66 Neutral	AU$2.42B	616.28	0.15%	7.32%	-18.98%	-99.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CRN	51 Neutral	AU$628.67M	-1.14	-36.13%	4.79%	-23.91%	-352.91%
BRL	50 Neutral	AU$172.78M	27.98	1.34%	―	-5.47%	-86.96%

Stanmore Resources Ltd Corporate Events

Stanmore Resources Reports Strong Q3 Performance Amid Market Challenges

Stanmore Resources Ltd reported improved operational performance in the third quarter of 2025, with increased ROM and saleable coal production. The company has successfully maintained its safety record, with no serious accidents reported. Despite challenges in the global metallurgical coal market, Stanmore has demonstrated financial resilience, reducing net debt and maintaining strong liquidity. The company is on track to meet its revised full-year production guidance, supported by healthy inventory levels and improved market conditions.

The most recent analyst rating on (AU:SMR) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on Stanmore Resources Ltd stock, see the AU:SMR Stock Forecast page.

Stanmore Resources Schedules Investor Call for Quarterly Report Discussion

Stanmore Resources Limited announced an upcoming investor call to discuss their September 2025 Quarterly Activities Report, scheduled for October 21, 2025. The call, hosted by CEO Marcelo Matos and CFO Shane Young, will provide insights into the company’s recent activities and future plans, potentially impacting its operational strategy and stakeholder interests.

The most recent analyst rating on (AU:SMR) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on Stanmore Resources Ltd stock, see the AU:SMR Stock Forecast page.